John M. Brennan
Attorney
Susan t Chanter, Attorney
Maryland, D.C., Rhode Island
Brennan Title Company
Brennan Management Company
Brennan Real Estate Exchange
CONTRACT FOR LIMITED LEGAL SERVICES
Brennan Financial Corporation
Hamilton Associates L.P.
Date:
Hamilton Equity L.P.
Name: "Client(s)"
Diversified Resources Corporation
(NASD Approved Broker Dealer)
, hereinafter referred to as
Oaklawn I Partnership
Property Address: "premises", and
, hereinafter referred to as
John M. Brennan, Attorney, hereinafter referred to as "Attorney" (to
include any and all attorney's associated with John M. Brennan), agree, as
follows:
Attorney shall provide services in connection with the
application and/or negotiation of reduced or modified mortgage payments
related to "premises" or for the release of the existing deed of trust(s) in
support of a sale of the premises for an amount less than the actual debt or
for a reconveyance of premises to lender by "Deed in Lieu of
Foreclosure". Attorney's services and duties are limited in scope to this
specific purpose.
2.
Attorney acting directly or thru his affiliated attorneys and with
the assistance of Brennan Title Company is hereby auithorized to reprsent
Client(s) in any and all matters relating to the above stated services and to
deal in our name and as our counsel with Lender in connection
with any and all matters related to loan # . Client
discloses that there (is) (is not) a second deed of trust, homeowner equity
line of credit or other lien effecting the said premises.
3.
Bankruptcy Clause: Client(s) represents and warrants to
Attorney (and "others") that Client(s) are not in bankruptcy nor does
Client(s) contemplate seeking bankruptcy protection during negotiations
or until Attorney (and "other") have completed negotiations with lender.
Should Client(s) seek bankruptcy protection at any time during the
5865 Allentown Road • Camp Springs, MD 20746 • 301-423-5556 • FAX 301-423-5354
negotiation by Attorney (and "others"), the fee provided for in this
agreement will be due in full and the Attorney (and "others") will
terminate all services. Attorney does not perform bankruptcy services and
cannot advise Client(s) regarding the proprietary or necessity of such
action. Client is advised to seek the advice or services of a bankruptcy
attorney to determine the appropriateness of such action.
4.
Client(s) Fee: It is the contemplation of Attorney and Client
that Attorney fees shall be paid by Lender(s) from sums due lender(s) in
the settlement of short sale, modification or Deed in Lieu. However,
Attorney's fee for services provided for in this agreement is $2,500.00,
(plus cost reasonably necessary in providing services to client such as title
report and overnight delivery) which sum shall be due and payable upon
the completion of short sale, Deed in Lieu or modification.
5.
Termination: Either Client(s) or Attorney (and "others") may
terminate any obligation for future services under this agreement effective
immediately upon receipt of written notice of termination. Any such sums
paid will be paid and applied to costs and work performed. Client(s) will
upon performance by Attorney (and "others") be required to pay for
services rendered to date as per paragraph 4.
6.
Other Professionals: Other professionals or service providers,
including title company, real estate agents, accountants, appraisers,
surveyors, engineers, or other Attorneys and paralegals can be hired by the
Attorney to assist in your case. The Attorney will select these other
professionals and service providers.
7.
Client (s) Cooperation and Duties: The Attorney (and
"others") cannot complete their tasks without the cooperation and
assistance of the Client(s). The Client(s) agrees to immediately provide
requested information required by the lender, within 48 hours of said
request. Failure to do so will be a violation of this agreement and the
attorney may terminate all services.
8.
Settlement: Client(s) will provide in any existing or future
listing that upon execution of any sale agreement that Brennan Title
Company will be selected by buyer and seller to handle the closing. Seller
hereby irrevocably (a) instructs any title company or attorney or other
entity closing the sale of the "premises" to pay from the said closing the
Attorney fee agreed to herein; (b) assigns to "Attorney" any and all
proceeds of and from the sale of the said premises, to include any
allowance by the lender under the HAFA program, or other credits from
lender(s) an amount equal to the fees agree to herein and (c) authorizes
lender to deduct said fee and to pay said fee from any amount due to
lender to Attorney at settlement.
9.
I/We understand that the lender(s) may approve a Short Sale
(reduced payoff), however, we are further aware that the lender
may reserve the right to collect funds owed to them over and
above the amount to be paid and approved by said lender in this
transaction and, therefore, may seek to collect the remaining funds owed
to the lender in the form of a note to be signed by us at closing or may
seek to collect the remaining sums owed at some time after closing. l/We
understand that John M. Brennan, Attorney is not responsible for
obtaining a full release of personal liability but has been hired solely to
provide release of the mortgage lien so that I/we may convey the premises
to the purchaser free and clear of any outstanding lien on the premises.
10.
Lender may provide an IRS Form 1099 to us stating the
amount of deficiency that has been forgiven and we may be required to
pay state and federal taxes on this amount. You
should obtain tax advice from your tax accountant on this
matter. Current law provides relief from this tax for certain homeowners
where the premise has been occupied as a permanent residence. This
relief may expire if the premise is not conveyed by 12/31/12..
READ THIS AGREEMENT CAREFULLY BEFORE SIGNING AND
RETAIN A COPY. ASK QUESTIONS ABOUT ANY ITEM(S) YOU
MAY NOT UNDERSTAND. YOUR SIGNATURE ACKNOWLEDGES
YOUR UNDERSTANDING OF YOUR OBLIGATIONS HEREIN AND
YOUR AGREEMENT TO PAY ACCORDING TO ITS TERMS.
John M. Brennan, Attorney
By
Date Client(s)
Name Date SS# Name Date SS# Lender Account # Email Contact Home Phone
Mobile
Work
JOHN M. BRENNAN, ATTORNEY
AUTHORIZATION TO RELEASE INFORMATION
To Whom It May Concern:
1. Initial all that apply:
I/we have a mortgage loan with 1st Trust Account No. I/we have a 2nd mortgage loan with
2nd Trust Account No.
I/we have a lien, judgment, or Home Equity Line of Credit with (please provide
account number, case number, and any contact information you have available)
I/we authorize you to provide to John M. Brennan, Attorney, phone 301-261-8199, fax
410-224-8343, e-mail is: Jbrennanra),brennantitle.com , and also to Brennan Title Company,
Lisa Borza or Sandy Posey, 116 Defense Hwy, Suite 205, Annapolis, MD 21401 phone 301261-8999, fax 410-224.8343, Lisa's email: lborza@brennantitle.com; Sandy's e-mail:
sandy@brennantitle.com or Anne Pell, phone 410-798-0064 email: annr&)aSt
any and all information and documentation that they request such information includes, but is
not limited to, payment history, payoff information, credit information , costs relating to
attorney fees and any other fees associated with my loan.
I/we authorize you to speak with, communicate with and negotiate with Brennan Title
Company and or Lisa Borza, Sandy Posey, Anne Pell relating to payment of the
Mortgage Loan.
2. This authorization includes the mortgage lender and any investor servicing the
Mortgage loan and any attorneys working for the lender or judgment creditors
relating to the collection of this loan.
3.
FEE AUTHORIZATION:
Uwe authorize John M. Brennan, Attorney to receive his fee of $2500.00 from our
lender and agree that any funds provided to us by the lender may
be retained by the attorney provided such funds to not exceed the amount of $2,500.00.
A copy of this authorization may be accepted as an original:
Borrowers Signature, Printed Name SS#
Phone No.
Borrowers Signature, Printed Name SS#
Phone No.
Property Address:
TO: Title Company
RE: Property Address: SELLER:
BUYER:
ASSIGNMENT OF COMMISSION
I Seller/Listing Agent/Selling Agent agree to pay a portion of your fee of $2500.00, if
said fee is not authorized by the short sale lender, to be paid to you at closing by way of a
reduction in our commission and authorize the title company handling this transaction to
collect the sums upon receipt of an invoice from John M. Brennan, Attorney and
approved by my/our broker.
Seller Listing Agent
Listing Agent Broker Selling Agent Selling Agent Broker
Basic Requirements for a
Short Sale Package
Items listed below without a check must be provided and/or completed by the homeowners or
borrowers and returned to the Agent for submission to the Lender(s). The documents already checked
will be the responsibility of the Agent to provide.
3
3
3
3
3
3
Authorization to Release Information Form
Hardship Letter
Financial Worksheet
Most recent mortgage statement(s) from each lender
Listing Agreement
Copies of Tax Returns (last 2 years-first 2 pages only)
Copies of All Bank Statements (last 2 months for all borrowers)
Copies of Pay Stubs (last 2 pay periods for all borrowers)
Signed Purchase Offer (See Note #3 Below)
Buyer's pre-qualification letter from lender. If cash, proof of funds from banking institution.
Estimated Closing Sheet (Estimated HUD-1)
CMA
If Junior Liens, those must be negotiated by agent/borrower
Note #1:
If the homeowner is self-employed and does not have any pay stubs, a year-to-date Profit and Loss Statement and Balance Sheet must be provided.
Note #2:
A brief explanation is required from the borrower if any of the above documentation is unavailable. The
borrower will need to sign and date the document.
Note #3
Conventional and VA loans: Include the signed offer and HUD-1 when submitting the short sale pkg.
FHA loans: Submit offer and HUD-1 after borrower is accepted into the program and an appraisal has
been ordered.
Note #4
When receiving the offer from the Buyer or Buyer's Agent, confirm the language below is included in the
"Special Provisions" section of the Buyer's Offer. The Offer will NOT be executed until the lender approves the offer. However, the Lender wants to know there is both a willing buyer and a willing seller,
therefore the homeowner will need to initial and sign the Offer before it is sent to the Lender for approval.
"All parties understand that (1) the subject property is being sold via a Short Sale and all
terms of this contract must be approved by the Seller's lender, (2) the property is being
sold as-is, and (3) this contract will not be executed and therefore the Option Period will
not begin until approval is received from by the Seller's lender".
Note #5
In isolated cases some lenders have Lender specific documents they require on their own letterhead
or stationary.
— Client Questionnaire —
l'aBorroWer
• rProperly Sliest Address t
, '
Properly City & Zip
• ' s. SSItortoWerls SRP
Date
Borrower(s) Phone
Borrower Mailing Address
.. tcellonnwer's SSP ' . ,'
• Bonowet Mailing Address
Borrower(s) Email
Co-Borrower(s) Phone
•
Borrowees Mailing Address City & Zip
Ate Utilities Still On?
Co Borrower(s) Email
Borrower(s) Fax
Purchase Price
Year Purchased
Amount own
Number of Mos. in
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Number tit In
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Occupied? Owner or Tenant
Year Built
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stinted Repair Costs
•
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Referrine Ageht Phone/Emall
Notes:
Include the name, email, phone number and/or fax of person at your Lender you have been talking to.
Client Queslionaire- Revised 09-01-08
Hardship Letter Guidelines
Remember to state the following items in your hardship letter:
1. Hardships — What are your hardships (current and past). For example —
unemployed, car accident, medical problems (personal or family), etc. Go into a
little detail about each hardship. The following are the most important messages
to get across to the Lender:
a. Why you will not be able to be current again on your loan.
b. We do not have enough income to make these payments.
c. We are leaving the property.
2. Your Assets — Explain that you have no assets with which to continue paying.
3. Any signed exemptions of documents — If you do not have bank statements, pay
stubs or tax returns, you will need to explain the reason in more detail in your
letter as to "why" you can not provide those documents. (i.e. I've been
unemployed for 6 months and have not been able to find work) Note- realize that
if you don't have tax returns, then the bank will ask for Extension-Fillings. So, if
you don't have Extension-Fillings either, explain why in this letter. (i.e. "I haven't
worked in over 2 years and so I haven't filed taxes nor extensions", or "I haven't
filed my tax returns for the past 2 years and I failed to file extensions as well).
4. Bankruptcy — You could also mention "I don't want to have to file bankruptcy".
Sample Hardship Letter
[*Remember, YOU must write your own Hardship Letter to the Lender(s)]
To Whom It May Concern:
I have been unable to make my payments on my house, and I am now facing
foreclosure. My inability to keep up with the monthly payments is the result of (loss
of job, illness, accident, death or disability of a wage earner — describe in detail what
your hardship is)
In spite of my current financial difficulties, I expect that it will only get (better /
worse). I am not in a position to continue making my mortgage payments. This was
not at all what I intended but I have come to the conclusion that this is my only
option.
Your help and consideration in this matter are very much appreciated.
{Date}
{Signature}
{Printed Name}
Sample Hardship Letter #1
November 04, 2005
Re: Loan Number 1515041xxx
To Whom It May Concern:
I am writing this letter to explain what has happened in our life to cause us to get delinquent
on our mortgage and putting us in the current situation of foreclosure, which we very much
regret.
In March of 2004, I took a temporary position with a local company and was there until
August of this year. Prior to March my income had varied from week to week and
circumstances arose that were beyond our control. Since, buying our home we have
experienced serious financial set backs such as: having to replace appliances, elderly parents
getting very ill and having to make trips back home, change of jobs, child care expenses,
having to buy a vehicle and having to come up with a large down payment because of our
poor credit rating, paying off numerous credit cards that arose during our job transitions.
There were many months in 2003 that we got behind on the mortgage payment and then we
were asked to make 2800.00 payment, which drained us and did not allow us to meet other
obligations. It became a vicious cycle. It just seemed as if the more we tried the bigger the
hold got. We both come from families who instilled strong work ethics, so we became very
discouraged when we had no place to turn for a leg up. As I have said, both of us have
elderly parents who have never been accustom to lending their children money and because of
our credit rating, we were unable to turn to banks for loans or refinancing. We wish we could
refinance everything but we know this is impossible. We have had enough of this struggle.
We have tried to sell the property for months and have gotten no interest and no offers,
simply because it is priced too high. But, we cannot drop the price any because of what we
owe you, the bank. We spoken to a bankruptcy attorney and have been advised to file, but
we don't want to run the risk of ultimately having both a bankruptcy and foreclosure on our
record. Since August, I have been employed as a full-time employee with an established
company and I plan to make a career there. My wife was recently promoted to
Administrative Assistant at her company, where she has been employed since December 2001.
We both feel like financially things are beginning to be stable for us. We regret our financial
history and are terribly embarrassed by it, but we are determined to move forward and start
over. At this time, we have no money to make up the back payments and would ask you to
please consider allowing us into your Short Sale Program so that we can drop the price of the
house and sell the house quickly, so that we can settle our obligation to you and move on
with our lives. Thank you for your time and consideration
Sincerely,
Homeowner
Sample Hardship Letter #2
Re: Loan #5478xxx
To Whom It May Concern:
I am writing this letter to share some of the hardships I am facing in my life, and to help you
understand why I have fallen behind on payments. As you know, my property located at
12345 Main Street, Wherever, Texas, account #5478xxx, is facing foreclosure in the near
future.
Following my divorce, I purchased my home as a single mother in hopes of raising my
daughter in a stable environment.
In August of 2003 I lost my job of ten years. After searching diligently for months for other
employment, without success, I decided to try and start my own business doing interior
painting and installing floor tile. This type of work has not been productive, only allowing me
to live paycheck to paycheck and even barely at that. I have fallen behind on all my bills,
reaching termination status. I am currently seeking other employment and have done so for
several months. Again, without success. I am barely making ends meet to put food on the
table for my daughter.
As you also know, I have agreed to a repayment plan in hopes that some type of employment
would come through for me and bring me current on my payments so that I may keep my
home. I have failed to meet the requirements of this repayment plan because of
unemployment and accept the fact that I cannot afford to keep my home any longer.
I have been advised to file bankruptcy and have thought seriously about filing, but I prefer to
avoid further destruction of my credit. I just want to move forward and start over. I can only
do this with your help. I am pleading with you to PLEASE allow my Realtor, Michael Spickes,
to work out a Short Sale on my home before it goes into foreclosure. Since I purchased my
home, the home values have dropped in our area, so I currently owe more on my mortgage
than the home is actually worth. If I put it on the market right now, there is no way I could
sell it for anywhere what I need to pay off my mortgage balance plus cover the Realtor
commissions and closing costs. In other words, I am terribly upside-down on this house and
need help so that I don't have to go through the devastation of foreclosure. I just need
someone to give me a huge break. Again, I am asking you to please consider assisting me by
allowing my Realtor to begin trying to Short Sale my home.
Should you have any questions or need further information, please feel free to contact me at
(123)456-7891.
Sincerely,
Homeowner
Sample Hardship Letter #3
December 8, 2004
To Whom It May Concern:
Loan #001133xxxx
We are writing this letter to share some of the hardships that we have been dealing with and
trying to overcome. As you know, our property located at 123 Main Street, Wherever, Texas
is currently facing foreclosure. We were taken to court by my husband's ex-wife and were
required by the judge to set up a trust fund for approximately $6500. In June, it rained
seventeen days straight and my husband is in remodeling/construction and was unable to work
most of those days. Also, our property taxes are not escrowed into our monthly mortgage
payment and we are trying to get this debt paid. We have had our house on the market for
two months in an effort to sell. To date, there has been only one offer and it was far less than
the amount that we owe the bank and less than the house is worth, given the state of our
local economy. Our Realtor, Michael Spickes, has advised us to drop the sales price so that
the property will sell, but the only way we can do this is for you, the bank, to take less than
what we currently owe you as we do not have any additional cash to close the sale.
Please work with our Realtor, who is advising us to lower the sales price on our house so that
we can sell it before we end up in foreclosure. We do not want to file bankruptcy, we prefer
to avoid further destruction of our credit. We just want to move on and start over. We are
asking your help in this matter.
Sincerely,
Distressed Homeowners
BORROWER'S FINANCIAL STATEMENT
Loan #:
Borrower Name: Mailing Address:
ISocial Security #:
Employer:
Employer Address:
Daytime Phone:
Email Address:
Number of Dependents at this address:
Co-Borrower Name:
Mailing Address:
Position:
Employer Phone:
Evening Phone:
ISocial Security it:
Employer:
Employer Address:
Position:
Employer Phone:
Daytime Phone:
Email Address:
Evening Phone:
ASSETS/LIABILITIES
DESCRIPTION
Estimated Amount
Value
Owed
Net Value
DESCRIPTION
Primary Residence
Gross Pay .
Other Real Estate
Overtime:
Automobile: Commissions:
Automobile: Bonus:
Checking Account: Child Support:
Savings Account. Rental Income.
IRA/Keough Accts: Other (Specify):
Borrower
Co-Bor
401 (K) Acct.
Stocks/Bonds/CD's
Boats.
Collections/Art/Etc
NET INCOME:
Personal Items: ACKNOWLEDGEMENT add AUTHORIZATION' ,
ACKNOWLEDGEMENT
I obtained a Mortgage loan secured by the above referenced mortgaged properly. I have described my current
financial condition with this Financial Statement form and I certify that all information presented herein, as well as
all attachments is true, accurate, and correct to the best of my knowledge. I understand that submission of this
information in no way obligates my Lender, Mortgage Servicer, Investor or Insuror to provide assistance to ma
AUTHORIZATION
By signing this Financial Statement, I hereby authorize my lender, Mortgage Servicer, Insurer and their
respective agents to order a credit report and verify any and all employment and account nformation.
Borrower Signature
Date
Co-Borrower Signature
Date
Total
MONTHLY EXPENDITURES
', BALANCE DUE ...
MONTHLY. DUE;*,
ESCRIPlION
DELINQUENT Y
Household Expenses:
Mortgage Payment
Other Mortgages
Alimony / Child Support
Child Care
Electric / Gas / Heat
Water / Sewage
Telephone / Internet
Food for Household
School / Work Lunches
Clothing / Dry Cleaning
Cable TV / Satellite
Total HoPtehold Expenses ''' 7;',.e:r.'
Credit Card Expenses:
VISA
MASTER CARD
DEPT STORE CREDIT
Other Credit Cards
TistalCiedItetilt apenset,,.,4:.),- l';.-./ ivcr..- -
Auto Expenses:
Auto Loan #1
Auto Loan #2
Auto Insurance
Gasoline
Auto Repairs
Parking
Total Auto Einiehielt.lit
Vie,/:.
7/
Personal Loans:
Personal Loan #1
Personal Loan #2
1 "r— &
roanWirMi"
..d
Ins./Medical Expenses:
Health Insurance
Life Insurance
Doctors / Dentists
Prescriptions
Medical bills
Totailili/Midiataltienses '.; ' --
Miscellaneous Expenses:
Charity / Donations
Union Dues / Club Dues
Entertainment
Sports / Hobbles
Vacations
MISC. Expense #1
MISC. Expense #2
MISC. Expense #3
TdtatMlabalrtgr-itrin. 'Veil'
***Please note: DO NOT list bills in the MONTHLY DUE column if they are a "one-time" debt.
Please NOTATE if any of the above bills are deducted from your paycheck.
Please NOTATE any loans which will be paid in full within the next 6 months.